the Applicant v Indochine Resources Pty Ltd
Citation: [2015] FCA 377
At a glance
- Employees affected
- 1
What happened
the Applicant was employed by Indochine Resources Limited (IRL) as chairman, company secretary, and chief financial officer from 1 May 2008. His employment was terminated on 21 June 2010. IRL admitted being his employer. the Applicant sought compensation for unpaid annual leave of approximately $110,000 and damages for breach of contract exceeding $3 million. Indochine Mining Limited (IML) was formed on 27 January 2010 as a holding company and became the parent of IRL following a restructure.
What was decided
the Applicant sought to join IML as a respondent, alleging it was his employer or co-employer from 27 January 2010. The court dismissed his application to join IML. The court found no issue in dispute regarding who was the employer (IRL had admitted it in its defence). the Applicant's assertion of an oral variation of his contract to transfer his employment to IML was not properly pleaded and lacked supporting evidence. No material facts were identified establishing joint employment. Joinder was not appropriate.
What it means for employers
Employment status is determined by fact, not subjective belief. Corporate restructuring does not automatically change an employee's employer without proper agreement. Companies should document any changes to employment relationships through written agreements.
What it means for employees
Employees must establish the identity of their employer through proper evidence and contractual documentation. Oral assertions of changed employment relationships are difficult to prove and should be documented in writing.
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This summary was drafted from the published decision and reviewed before publishing. It is general information, not legal advice. For your specific situation, speak to the Fair Work Ombudsman (13 13 94) or a qualified lawyer. About these summaries & corrections →